Who Loves VirnetX Holding Corporation (VHC)?

VirnetX Holding Corporation (NYSEAMEX:VHC) investors should pay attention to a decrease in enthusiasm from smart money lately.

At the moment, there are plenty of gauges investors can use to monitor stocks. A couple of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best hedge fund managers can outclass the market by a healthy margin (see just how much).

VirnetX Holding CorporationEqually as beneficial, positive insider trading sentiment is another way to parse down the investments you’re interested in. Obviously, there are many motivations for a corporate insider to downsize shares of his or her company, but only one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the market-beating potential of this strategy if “monkeys” know where to look (learn more here).

With all of this in mind, we’re going to take a look at the latest action regarding VirnetX Holding Corporation (NYSEAMEX:VHC).

Hedge fund activity in VirnetX Holding Corporation (NYSEAMEX:VHC)

Heading into 2013, a total of 6 of the hedge funds we track held long positions in this stock, a change of -14% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes significantly.

When looking at the hedgies we track, Eric Bannasch’s Cadian Capital had the largest position in VirnetX Holding Corporation (NYSEAMEX:VHC), worth close to $36.1 million, accounting for 1.2% of its total 13F portfolio. On Cadian Capital’s heels is Citadel Investment Group, managed by Ken Griffin, which held a $6.4 million call position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Daniel S. Och’s OZ Management, and Daniel S. Och’s OZ Management.

Because VirnetX Holding Corporation (NYSEAMEX:VHC) has experienced bearish sentiment from the smart money, it’s easy to see that there were a few funds that decided to sell off their full holdings in Q4. Interestingly, D. E. Shaw’s D E Shaw sold off the largest stake of the 450+ funds we watch, comprising close to $2.4 million in stock., and Chuck Royce of Royce & Associates was right behind this move, as the fund cut about $0.6 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 1 funds in Q4.

What do corporate executives and insiders think about VirnetX Holding Corporation (NYSEAMEX:VHC)?

Bullish insider trading is particularly usable when the company we’re looking at has experienced transactions within the past half-year. Over the latest 180-day time frame, VirnetX Holding Corporation (NYSEAMEX:VHC) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to VirnetX Holding Corporation (NYSEAMEX:VHC). These stocks are J2 Global Inc (NASDAQ:JCOM), ExactTarget Inc (NYSE:ET), Demand Media Inc (NYSE:DMD), DealerTrack Technologies Inc (NASDAQ:TRAK), and Angie’s List Inc (NASDAQ:ANGI). All of these stocks are in the internet software & services industry and their market caps match VHC’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
J2 Global Inc (NASDAQ:JCOM) 10 0 5
ExactTarget Inc (NYSE:ET) 9 2 17
Demand Media Inc (NYSE:DMD) 8 0 2
DealerTrack Technologies Inc (NASDAQ:TRAK) 9 0 8
Angie’s List Inc (NASDAQ:ANGI) 9 0 6

With the results demonstrated by the aforementioned tactics, retail investors must always watch hedge fund and insider trading sentiment, and VirnetX Holding Corporation (NYSEAMEX:VHC) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!